Alabama Insurance Guide

Here are just a few facts about the insurance policies and requirements of the state of Alabama.

Alabama Auto Insurance

Alabama insurance regulations are pretty easy on drivers. There is no requirement that drivers carry personal injury protection (PIP) coverage or uninsured motorist coverage. They must have liability insurance with a bodily injury benefit of at least $25,000 for a single person injury and $50,000 for collective injuries. They must also have a benefit of $25,000 for property damage. Alabama is not a no-fault state, so your Alabama auto insurance company will take the time to determine which driver is at fault before deciding who should foot the bill.

Alabama Health Insurance

Alabama health insurance regulators place no special requirement on residents to get health insurance coverage. Pre-existing conditions can be excluded by insurers issuing individual Alabama health insurance policies and there is no open high-risk pool for those denied individual insurance coverage. While some Alabama health insurance consumers may decide to buy high deductible plans with health savings accounts, they will find that Alabama does not allow them to deduct those contributions from their state income taxes.

If you are looking for group insurance in Alabama, the group must have a minimum of 2 people to cover. Alabama health insurance rates for groups are restricted to rate bands and, if there was a 63 day or longer break in coverage within the 6 months prior to taking out the plan, pre-existing conditions can be waived for up to 12 months.

Alabama Home Insurance

Alabama home insurance is an optional coverage as far as the state insurance department is concerned. Alabama makes no requirements that its citizens have home insurance when their homes are paid in full. Naturally, individual lenders require some insurance if there is a mortgage or loan on the home.

Alabama home insurance is useful during hurricane season, when Alabama residents are often battered by storms in the Gulf of Mexico. Because of the high rates of incident in Alabama, many counties have seen their home insurance rates skyrocket. A new bill created by the Homeowners’ Hurricane Insurance Initiative is working to ensure that rate increases are not unfairly targeted to certain counties in Alabama.

Alabama Life Insurance

The Alabama Life & Disability Insurance Guaranty Association (ALDIGA) was created in 1983 to help protect consumers and provide payment in the event that their life or disability insurance company became insolvent and could not pay claims. In the event of failure, ALDIGA will pay up to $300,000 for a life insurance death benefit and $100,000 in cash surrender benefits. This makes Alabama life insurance that much more valuable.